Regulatory Issues in Merchant Transmission Investment

Gert Brunekreeft

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: Driven by fear of underinvestment in network assets, merchant investment in electricity transmission networks (MTI) is now legally allowed. Given that MTI is a real possibility, regulators face a new set of questions. After classifying different types of MTI, the paper raises and analyses regulatory questions, concentrating on the effect on competition, ownership questions, third-party-access regimes and must-offer provisions. Basically, the paper concludes that the light-handed approach of unregulated MTI supports a light-handed approach with respect to complementary measures as well. In many cases, it is justified to refrain from sector-specific arrangements because competition law, if necessary at all, will suffice. However, details matter.

Keywords: Electricity; Investment; Regulation; Transmission; Merchant (search for similar items in EconPapers)
JEL-codes: L43 L5 L94 (search for similar items in EconPapers)
Pages: 23
Date: 2004-04
New Economics Papers: this item is included in nep-ene
Note: CMI38, IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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